Visibility and Control

What is financial transaction visibility and control?

Visibility and control over financial transactions are essential for accountants and finance teams to maintain accurate financial records and ensure the compliance of their organizations.

Financial transaction visibility and control refer to the ability to see and manage all financial transactions within an organization. This includes being able to track the flow of money, identify and prevent fraud, and ensure that transactions are properly authorized and recorded.

Why is financial transaction visibility and control important for accountants?

Accountants play a critical role in the financial health of organizations. They are responsible for maintaining accurate financial records, preparing financial statements, and providing financial advice.

Financial transaction visibility and control are essential for accountants to fulfill these responsibilities effectively.

Here are some of the specific benefits of financial transaction visibility and control for accountants:

• Improved accuracy of financial records: By having visibility into all financial transactions, accountants can more easily identify and correct errors in their records. This helps ensure that the organization’s financial statements are accurate and reliable.
• Reduced risk of fraud: Financial transaction visibility and control can help reduce the risk of fraud by making it more difficult for perpetrators to conceal their activities. Accountants can use this information to identify suspicious transactions and investigate them further.
• Improved compliance: Financial transaction visibility and control can help organizations comply with financial regulations. Many regulations require organizations to track and report on certain types of financial transactions. By having visibility into all financial transactions, accountants can more easily meet these compliance requirements.
• Better decision-making: Financial transaction visibility and control can help accountants make better decisions by providing them with real-time insights into the organization’s financial performance. This information can be used to identify areas where costs can be reduced or where new opportunities can be pursued.

How can accountants get visibility and control over financial transactions?

There are a number of ways that accountants can get visibility and control over financial transactions. One common approach is to implement a financial management system. Financial management systems provide accountants with a centralized view of all financial transactions. They also allow accountants to set up rules and controls to automate the approval and recording of transactions.

Another way to get visibility and control over financial transactions is to use artificial intelligence (AI) and machine learning (ML) technologies. AI and ML technologies can be used to analyze financial transactions and identify suspicious activity. They can also be used to automate the process of reconciling accounts and generating financial reports.

In addition to using technology, accountants can also improve their visibility and control over financial transactions by implementing sound internal controls. Internal controls are policies and procedures that are designed to prevent fraud and ensure the accuracy and reliability of financial records. Some examples of internal controls for financial transactions include:

• Segregation of duties: This involves assigning different tasks to different employees so that no one employee has complete control over a transaction.
• Authorization and approval procedures: This involves requiring certain transactions to be authorized and approved by multiple employees.
• Physical controls: This involves using physical controls, such as safes and locks, to protect assets.
• Reconciliation: This involves reconciling accounts on a regular basis to identify and correct any discrepancies.

By implementing a combination of these strategies, accountants can improve their visibility and control over financial transactions and reap the many benefits that this brings.

Here are some additional tips for accountants on how to improve their visibility and control over financial transactions:

• Regularly review financial reports: This will help accountants identify any unusual or unexpected activity.
• Implement a fraud prevention program: This program should include training for employees on how to identify and report fraud.
• Use data analytics to identify suspicious transactions: Data analytics can be used to identify patterns and anomalies in financial data that may indicate fraud or other problems.
• Keep up to date with the latest financial regulations: Accountants should stay up to date on the latest financial regulations to ensure that their organization is in compliance.

How Airbase helps with visibility and control.

Airbase offers visibility into company purchasing in a variety of ways and for all stakeholders. From the initial request to make a purchase to reconciliation, internal stakeholders have the transparency they need to control risks and reduce costs.

The various control features range from setting approval workflows to capping spending on cards. In addition, Airbase provides alerts when actions are out of compliance or when fraud is suspected.

Airbase provides a full audit trail for every step of all transactions. The result is better control over budgets and an end to wasted spending.